Rating & 2010 revaluation David Bridgewood MRICS Team Leader Lincoln Valuation Office

TPS Rating update It’s not about increasing taxes!  An increase in rateable value does not necessarily mean an increased rates demand  Multiplier adjusted so that the total rate stays the same, only allowing for inflation  In England the multiplier for 2010/11 is 41.4p, down from 48.5p in 2009/10  In Wales the multiplier for 2010/11 is 40.9p, down from 48.9p in 2009/10  Some rates demands will rise and some will fall – estimate by government is 60% will fall  Transitional relief limits changes to individual demands

TPS Rating update Changes and developments  More summary valuations  website  Ratepayers can now estimate rate bills online

TPS Rating update The effect on bills by region RegionBill before revalBill after reval% change London£5,765m£6,330m10% South West£1,790m£1,840m3% Central List£1,125m£1,155m3% North East£835m£825m-1% Yorkshire & Humber£1,885m£1,860m-1% North West£2,655m£2,590m-2% East of England£2,245m£2,180m-3% South East£3,530m£3,345m-5% West Midlands£2,070m£1,930m-7% East Midlands£1,555m£1,395m-10% Total£23,450m£23,445m0%

TPS Rating update The effect on bills by region Overall change: 0% KEY: -10%- -6% -5%- -1% 0% 1%-5% 6%-10% -3% -10% tbc -7% -5% 3% -1% -2% -1% London 10% before transitional relief

TPS Rating update The effect on bills by region Overall change: 0% KEY: -10%- -6% -5%- -1% 0% 1%-5% 6%-10% -1% -4% tbc -3% -2% 1% -0% -1% 0% London 3% after transitional relief

TPS Rating update The effect on bills by sector SectorBill before revalBill after reval% change before transition Offices£5,045m£5,280m5% Central List£1,125m£1,155m3% All others£6,465m£6,620m2% Retail£5,805m£5,835m1% Industry£5,005m£4,555m-9% Total£23,450m£23,445m0%

TPS Rating update Comparison of 2010/2005 RV by Economic Regions

TPS Rating update Some changes of approach  Code of Measuring Practice  First floors in offices without passenger lifts  Mezzanines in industrial properties  More retail space valued “overall”

TPS Rating update Economic circumstances  Important to distinguish between AVD and material day  Economic factors at 1 April 2008  Physical factors at 1 April 2010  Physical changes in intervening period reflected in new assessments

TPS Rating update A potted history  August 2007 – global credit crunch  September 2007 – run on Northern Rock  February 2008 – Northern Rock nationalised  April 2008 – AVD  September 2008 – collapse of Lehman Brothers marks start of worldwide recession  October 2008 – first UK bank bail-outs

TPS Rating update A potted history  November 2008 – Woolworths goes bust  March 2009 – interest rate hits all-time low 0.5%  August 2009 – unemployment reaches 14-year high c2.5 million  January 2010 – UK recession “officially over”  April 2010 – material day

TPS Rating update

Questions?